Refinance/Moderate Rehab

Owners of existing nursing facilities needing to finance capital improvements or to replace major movable equipment may be able to do this in conjunction with an FHA refinance. The 35-year fixed rate FHA loan can accommodate moderate rehabilitation costs up to 15% of value subject to other constraints. For projects with FHA financing in place, a streamlined refinance program is available. Some capital improvements can be financed under this program but the total loan amount cannot exceed the loan amount of the FHA loan being refinanced. Click here for a term sheet with more details.

Summary of Terms - FHA 232/223(f) Skilled Nursing & Assisted Living Acquisition and Refinance
LTV 80-85% / DSCR 1.45 / Term up to 35 Years

Sub Rehab

There is no better financing vehicle for substantial rehabilitation of a licensed skilled nursing facility than FHA. FHA provides a fixed rate construction-permanent loan that covers the acquisition or refinance of existing debt and construction hard and soft costs and then converts to a 40-year full-amortizing fixed rate loan. FHA will finance up to 80% of stabilized value (85% for nonprofits). Click here for a term sheet for nursing home substantial rehabilitation transactions.

Summary of Terms - FHA 232 Skilled Nursing
LTV 90% / LTV 80-85% / DSCR 1.45 / Term of Construction Period plus 40 Years  

New Construction

There is no better financing vehicle for a new licensed skilled nursing facility than FHA. Just like the apartment program, FHA provides a fixed rate construction-permanent loan that covers construction hard and soft costs and then converts to a 40-year full-amortizing fixed rate loan once construction is complete. FHA will finance up to 80% of stabilized value (85% for nonprofits). Some mixed use (commercial space, assisted living) can be accommodated so long as it fits with the overall purposing of the facility. Click here for a term sheet that summarizes the terms for nursing home new construction transactions.

Summary of Terms - FHA 232 Skilled Nursing
LTV 90% / LTV 80-85% / DSCR 1.45 / Term of Construction Period plus 40 Years  

Acquisition

FHA acquisition loans will finance up to 80% of the acquisition cost of skilled nursing facilities. The loan will be fixed rate with a term up to 35 years with a very attractive interest rate. Most often, the time required to obtain state approvals for the new owners will provide sufficient time for FHA processing. If timing becomes an issue, Rockhall has access to acquisition bridge capital that will enable us to close while the loan is still in the processing stage at FHA. If a facility currently is insured with FHA, the buyers can assume the existing debt or do a streamlined refinance. The new loan can’t exceed the original balance of the FHA loan being refinanced. Our originators would be happy to determine the FHA program that is the best fit for what you want to do.

Summary of Terms - FHA 232/223(f) Skilled Nursing & Assisted Living Acquisition and Refinance
LTV 80-85% / DSCR 1.45 / Term up to 35 Years